Getting to the heart of Horticulture
Transcript of Getting to the heart of Horticulture
Getting to the heart of
HorticultureOpportunities and challenges for
the horticulture and potato sectors
in the West Midlands
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CONTENTS
Foreword …………………………………………………………………………………………………………………………….. 2
Introduc�on ………………………………………………………………………………………………………………………...
Who has been involved
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4
Execu�ve Summary ……………………………………………………………………………………………………………
An ac�on plan for change
5
7
The Industry today …………………………………………………………………………………………………………….
Areas of hor�culture
Areas of crops grown
Value of crop output
Value added
Distribu�on of holdings
Employment
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Challenges………………………………………………………………………………………………………………………………. 21
Opportuni�es ………………………………………………………………………………………………………………………. 25
Conclusion …………………………………………………………………………………………………………………………… 28
Recommenda�ons ……………………………………………………………………………………………………………… 29
Appendix
1: Summary of survey areas by crop and county
2: Value of West Midlands hor�culture by crop and county
3: UK fresh vegetable supply routes
4: Value Added by producers and processors
4: Wholesale Markets
5: Supply chain overview of significant fresh produce crops
6: Collated responses to ques�on “What would make a posi�ve difference to your business
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Markets…………………………………………………………………………………………………………………………………
Customer rela�onships
Wholesale markets
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Case Studies
PDM: Salad growing in North Shropshire
Evesham Vale Growers: Exploi�ng renewables
Tyrell’s Crisps: Niche marke�ng
Cobrey Farms: Produc�on innova�on in asparagus growing
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Foreword by the Heart of Horticulture Steering Group
The horticultural sector including potatoes is extremely important to the West Midlands. While those of us who work within the sector in the region know this, we began 2011 also knowing that we need-ed to improve our evidence to support this view to enable us to press for change.
The “Getting to the Heart of Horticulture” study and this concluding report has been designed to give a comprehensive review of the state of the horticultural industry in the West Midlands in 2011. It quantifies the scale and scope of the fresh produce, potato and horticultural industry across the five counties of Shropshire, Staffordshire, Warwickshire, Worcestershire and Herefordshire. The report in particular highlights the diversity of horticulture within the region, the significant contribution made by horticulture to the regional economy and the scale of employment required by the sector.
Our study draws out a number of the key challenges the sector faces over the coming years. While business confidence is high there remains concern about supply chain margin pressure, the loss of R&D capability and attracting and retaining quality personnel into the horticultural sector. In addition the study highlighted sector concerns regarding water security. Growers however are enthusiastic about the potential of renewable technologies.
We are indebted to DEFRA for agreeing to fund the cost of this report, and to all of the support given to us by others in the industry, including Wychavon District Council, The Horticultural Development Company (HDC), The Potato Council (PCL) and many others.
We are also indebted to EFFP for their effort and the diligent and meticulous attention to detail in evidencing and clarifying the results. We can now use the content of this report with confidence to secure an ever improving offer for horticulture.
This report is industry driven and has been informed by those who chose to participate in the study steering group or by those who shared information by completing the survey questionnaire. We would like to thank all of the growers in the region who invested in the study by getting involved.
We hope that Getting to the Heart of Horticulture will be invaluable for all stakeholders in shaping future policy and direction for the horticultural sector.
Anthony Snell Stephen Watkins
Chairman Chairman
Study Steering Group West Midlands Board for Horticulture & potatoes
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1. INTRODUCTION
The hor�cultural sector is perhaps the most complex and least understood part of UK agriculture. Growers
produce an enormous variety of crops the majority of which have to be a harvested, processed and delivered just
in �me to meet the exac�ng standards of processors, retailers and consumers.
The sector has undergone a marked transforma�on par�cularly over the last 10-15 years. Professionalism
amongst producers has had to increase, par�cularly in response to consumer demand for high quality, varied and
fresh produce and retailers’ relentless pressure to get more for less. The output of hor�culture and potato
growing is the UK in 2010 is in the region of £3.6bn1, to which considerable value adding takes place in
processing and retailing, this underlines the importance of the sector to overall levels of employment. Around
fourteen per cent of na�onal hor�cultural output is produced in the West Midlands, consequently the
contribu�on of this sector to local economic and social wellbeing in many parts of this region is compara�vely
high compared to the rest of the country.
Any idea that hor�culture in the UK is an industry comprised of predominantly small businesses using low-level
technology is clearly out of date. The number of smaller and less specialist producers is falling as, in line with the
trend in Europe's hor�cultural powerhouses, the industry is becoming increasingly 'hi-tech', u�lising the latest
machinery and produc�on methods. Compe��on from imports and other growers require the hor�cultural
industry to be adaptable and to adopt new technology readily. However, growers also need the local economic,
legisla�ve and poli�cal environment to be as suppor�ve as possible. Understanding the extent to which
producers in the West Midlands are mee�ng these and other challenges is necessary to ensure that the sector
can con�nue to grow and develop.
EFFP carried out a survey of growers in the West Midlands to assess the current size and structure of the sector
and to explore likely future changes. It was sent to 460 growers in the region using the Hor�cultural
Development Company (HDC) and The Potato Council (PCL) producer databases. A total of 129 completed
surveys were returned, a response rate of 28.6%. A range of informa�on sources have been used in addi�on to
the data collected from the survey to describe and appraise the sector and its relevance to the West Midland
economy.
The purpose of carrying out this research and producing this report is threefold, it is expected to:
• Raise robust sta�s�cs on the value and impact of the sector
• Provide an assessment of sector compe��veness and viability
• Iden�fy the key issues that need to be addressed by the sector in the next 10 years
Potatoes are some�mes considered separately in sta�s�cal data, but for the purposes of this project are
included within the defini�on of "hor�culture."
It is an�cipated that the report will be used in many ways, not least to provide evidence to support planning
applica�ons in par�cular by demonstra�ng the value of the sector to the local economy. The sta�s�cs produced
by this research should prove helpful to hor�cultural businesses in the West Midlands by providing them with a
wide range of facts and figures that will be useful when applying for RDPE funding and other grants and to raise
the profile of the sector with interested par�es including those involved in Local Enterprise Partnerships (LEPs).
Similar studies conducted on a UK wide basis have raised many per�nent issues, including skills and recruitment
and the need for greater horizontal and ver�cal collabora�on. Primarily it is hoped that this report will highlight
what can be done to improve the profitability of the sector and encourage supply chains to work more effec�vely
together across the West Midlands.
1 hJp://www.defra.gov.uk/sta�s�cs/files/defra-stats-foodfarm-farmmanage-agriaccount-�ffno�ce-110428.pdf
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Who has been involved
This project has been supported by RDPE funding provided by DEFRA. The survey itself was designed and
distributed by EFFP who have wriJen this report and will act as project managers for subsequent follow up
ac�vity with growers across the West Midlands. A steering group, made up of representa�ve growers and other
key stakeholders in the region was formed by the NFU to help guide the effort towards providing some valuable
outcomes for growers. The HDC and PCL cooperated to ensure that growers were sent the survey forms. Many
growers have given up their valuable �me to fill out the survey, respond to requests for informa�on and to share
their thoughts and opinions.
In addi�on to the 130 growers who responded to the ques�onnaire this report would not have been possible
without the hard work and commitment of the steering commiJee and a long list (too many to men�on) of
people who have given their �me freely to comment on various draLs and to generate ideas on how the report
could be improved and how the sector can be supported.
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Execu�ve Summary
The Hor*cultural Sector in the West Midlands
Hor�culture uses just 3% of the agricultural land in the West Midlands but contributes over 21% of the value of
its agricultural output. Around 30,000 hectares are used to grow a wide variety of crops of which over 60% is
accounted for in Herefordshire and Shropshire. Unlike other parts of the UK the hor�cultural sector has been
increasing in scale and output in the last few years in the West Midlands.
Approximately half of the hor�cultural land is used for growing potatoes with the remainder growing a wide
variety of crops. Other significant crops include blackcurrants (35% of UK produc�on), soL fruit (20% of UK
produc�on), cider apples (over 60% of UK produc�on) and asparagus (approx. 65% of UK produc�on).
The West Midlands accounts for nearly 14% of the UK’s £2.56bn hor�cultural output which makes it the third
most important region in England in terms of crop value. At the farmgate this output is worth over £350m which
makes it a significantly more important sector than cereal growing or milk produc�on. The Gross Value Added
by growers is approximately £200m and it is es�mated manufacturing and processing in the region adds a
further £390m so that the sector as a whole contributes at least £600m GVA to the region. To grow the crops
the sector sustains around 6,000 full �me jobs and at least twice this number are employed for seasonal work. In
addi�on approximately 7,000 people are employed in allied food processing and manufacturing. Added to these
totals is the economic ac�vity of suppliers to the sector and an enormous number of firms and individuals
involved in the logis�cs of moving fresh produce from farm to processor and then into the retailers, wholesalers
and food service companies.
The industry is consolida�ng and specialising. The largest 25% of businesses account for over 70% of the cropped
area and are growing at a faster rate than smaller businesses. Many growers are members of groups, grow crops
for a consolidator or have developed long term supply agreements with processors. This is par�cularly so for
cider produc�on but also with soL fruit and potatoes. Unfortunately, and for a variety of reasons, only a
minority of growers are making use of the EU fruit and vegetable scheme which could provide a significant boost
to incomes. Growers who are lacking in scale, are not part of a dedicated supply chain or who fail to cooperate
with other growers are less likely to be able to nego�ate pricing and contractual arrangements with processors.
They are in turn becoming fewer and vulnerable to the buying power of the major retailers.
The market for fresh produce is incredibly complex. There are at least 17 marke�ng intermediaries in the region
purchasing fruit and vegetables, two significant wholesale markets in Birmingham and Wolverhampton, traders
and a significant number of producers selling direct to processors. The majority of produce finds its way to the
major retailers. In addi�on around 15% of survey respondents sell all or some of their produce direct to the final
consumer. The fact that so many producers act independently contributes to industry fragmenta�on and forces
them to be price takers.
The challenges
In the survey producers were invited to rank the major challenges to the performance of their businesses.
Energy costs, pes�cide regula�on, and employment legisla�on and compliance are perceived to be the main
threat to growers’ business as they are a major cost and have a major impact on business performance.
Next in importance to growers are water security, recrui�ng and retaining skilled staff and the impact of
planning constraints and delays. The fact that planning issues, delays and constraints came up repeatedly for
those that are considering investment should be a maJer of concern. Unease was expressed around the ability
to raise finance from banks and although this may not be an issue for established and mature businesses it could
be a severe constraint for developing and expanding businesses.
Growers are generally confident about finding and keeping customers for their produce but over 75% were not
confident that the price they receive would be viable. This was mirrored by the fact that just 35% of producers
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felt confident in their ability to compete with imports.
The opportuni*es
Opportunities within the fresh produce sector are many and varied and can be divided between those relating
to improving/adopting operational performance (processes) or exploiting market opportunities.
Growers ranked investment in R&D as being more important than investment in training and skills. However
larger farm businesses placed a higher priority on training and developing people than smaller businesses.
Growers were invited to state what they thought would make the most positive difference to the performance
of their businesses. This question elicited a lot of different responses although there were several popular ideas:
• Investing to improve energy use and make more use of renewables
• Making more efficient use of resources
• Improved irrigation practice and reservoir development
• Increased emphasis on marketing and customer management
• Investing in better machinery
What needs to change
Given the diversity of the sector it would be easy to be overwhelmed by the sheer number of things that could
be done differently. It is also worth bearing in mind that the challenges faced by one crop won’t necessarily be
the same as those faced by others and therefore it follows that any recommenda�ons contained in this report
are of a general nature.
An Ac�on Plan for change is set out overleaf. It starts by focussing on the need for all parts of supply chains to
work closely together. This will reduce supply chain risk and give growers the confidence to invest and deliver
efficiency improvements. SiPng alongside this is the poten�al for growers to make use of the EU Fruit and
Vegetable Scheme. Many producers have been leL baffled by the scheme’s rules but this shouldn’t detract from
the poten�al support it offers, if a way can be found to comply with them.
Two recommenda�ons address the issue of the availability and skill of employees and owners which is a
recurring theme throughout the report. Firstly there is need to maintain the current SAWS scheme to safeguard
the produc�on of high value crops. Delivering high quality training is vital and so there is also a need to ensure
that those responsible for delivering training and qualifica�on to the sector work closely with producers.
Adap�ng to climate change and the availability of natural resources will be the major medium to long term
challenge for hor�culture and is likely to require significant investment. The economic and social pressure to
make more efficient use of these resources can only increase and as hor�culture by comparison to most other
agricultural enterprises is an intensive user of energy and water it will probably need to adapt its prac�ces more
than they do. Producers will need informa�on and access to capital to adapt.
Planning has long been a controversial maJer that impacts on the development of the sector as the balance
between economic development and preserving the aesthe�c iden�ty of the countryside is very keenly felt in a
sector that relies on protec�ng crops and having an appropriate infrastructure in order to be compe��ve. The
robust set of sta�s�cs contained in this report will help to validate the economic importance of the sector so
that beJer informed decisions can be made when planning and development applica�ons are put forward.
Finally the sector generally and in the West Midlands specifically cannot afford to be complacent about research
and development and needs to make sure that prac�cal and valuable research is carried out and that every
penny spent in this area is put to good use.
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AN ACTION PLAN FOR CHANGE
1. Support grower coopera*on and build effec*ve supply chain partnerships with transparent pricing mechanisms across all crops.
Growers will not invest in produc�on assets unless they are confident that reward outweighs risk. The most
stable and confident enterprises are those where growers, processors and manufacturers work together to
create and share value and have a high degree of certainty with pricing. Growers who cooperate will be
beJer placed to build these partnerships.
2 Make sure the West Midlands takes full advantage of the EU fruit and Vegetable Scheme
Derecogni�on of Producer Organisa�ons by the RPA has leL many producers bewildered. However, it is
possible to qualify and improve profits if the scheme rules are followed correctly. If Na�onal and EU
compe�tors make use of this scheme and growers in the West Midlands do not, this will create a serious
compe��ve disadvantage for them. Support is needed to help derecognised producers comply with the
scheme and enable new groups to successfully apply.
3 Create greater awareness of the employment opportuni*es the sector provides and retain SAWS to safeguard the produc*on of high value crops.
The sector needs reliable and flexible labour to cope with seasonal demand and the survey points to serious
limita�ons for many growers if the SAWS scheme ends in 2011 as proposed. An industry proposed new
SAWS scheme requires industry and poli�cal support if it is to come into effect.
4 Ensure high quality training, appropriate qualifica*ons and career development is a cornerstone of hor*cultural business plans
Hor�culture is technologically advanced, expanding and in need of a dedicated and skilled workforce. If the
industry offers rewarding long term opportuni�es to individuals it will aJract and retain the talent it needs
to remain compe��ve and grow. Making more use of appren�ceships and working closely with specialised
colleges should be encouraged
5 Exploit all forms of renewable energy where it is economical to build long term sustainable compe**ve advantage
Energy policy is being shaped by climate change and projected cost increases. Many hor�cultural businesses
working alone or with other growers have an opportunity to take advantage of government incen�ves and
developments in renewables technology. Case studies, study tours and links to specialist advice will enable
the sector to develop the knowledge and confidence to adapt to this opportunity.
6 Increase water storage capacity and ensure efficient usage of water by adop*ng best irriga*on prac*ce.
Expansion of hor�culture and the predicted impact of climate change on UK weather paJerns will increase
reliance on irriga�on. More water storage will be required and aJen�on focussed on irriga�on techniques
that allow more efficient use of water.
7 Make certain that individuals with responsibility for planning are fully aware of the social and economic benefits of developing the sector.
Planning constraints, delays and costs inhibit the modernisa�on and development of a sector with high
growth prospects. Greater awareness of the social and economic importance of the sector is needed. This
will require all parts of the sector to work together with coordina�on from and between organisa�ons that
represent growers and by individual growers helping one another. The sector needs representa�on and
engagement with Local Enterprise Partnerships to ensure its importance to the region is recognised and
that it can access a fair share of government support.
8 Build strong partnerships with organisa*ons responsible for research and development and work closely with regional higher educa*on ins*tu*ons
Government cuts have progressively dismantled many of the organisa�ons and networks that supported
agronomic research & development and knowledge transfer. More investment is needed to sustain
success. Much of this can take place at a na�onal level but colleges, universi�es, consultants and growers in
the region should aJempt to coordinate their ac�vity to avoid duplica�on and ensure that resources are
used in the most efficient and effec�ve way. Prac�cal field trials, discussion groups, access to experts and
engagement along the supply chain is needed to facilitate rapid adop�on of technology.
These ac�on points are described more fully in the Recommenda�ons on P. 29-32
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THE INDUSTRY TODAY
The West Midlands is blessed with an immensely varied, dynamic and resourceful range of hor�cultural
businesses. Herefordshire is renowned for its hops and cider apples but is also one of the most important
potato and soL fruit growing regions in the UK. Some fantas�c soils in Worcestershire, par�cularly in the
Evesham Vale, have led to world class produc�on standards for a range of crops including asparagus and high
levels of investment in glasshouses has made this a principal region for tomato growing. Potatoes remain an
important crop in Shropshire and in adjacent Staffordshire but the end of sugar beet growing has encouraged
several growers to use the excellent soils in this part of the region for growing high value salad crops and field
vegetables. In addi�on, the large urban popula�on in the region help to support a wide range of ornamental
plant producers who supply garden centres and the landscaping market. Hor�culture occupies just over 3% of
the agricultural land in the region but contributes more than 21% of the value of the regions agricultural output.
Area of Hor*culture in the West Midlands
DEFRA sta�s�cs indicate that the total area of farmland used for hor�culture and potatoes in 2009 amounts to
approximately 30,595 ha. The EFFP survey captured a total of 9,012 ha represen�ng 29% of the hor�cultural
area in the region. The overall number of completed forms represent a good response rate to a survey of this
type and enables a fairly accurate assessment of the sector to be produced. The rela�onship between surveyed
area and the amount of land captured by DEFRA in the annual census is set out in Table. 1 and Fig.1
Only the Eastern region and South East regions of England have more land allocated to hor�culture than the
West Midlands. The region as a whole has 12.2% of the total English land area allocated to hor�culture.
Recent data released by DEFRA shows that land allocated to hor�culture declined by 3% across England
between 2009 and 2010. However the West Midlands went against this trend by increasing its land area to
hor�cultural crops by 7% in the same period. This increase was mainly as a result of large increases in the areas
of field vegetables and soL fruit. In the last decade the area of potatoes grown in the region declined from a
peak of around 23,000 ha to just over 16,000 ha in 2007, a decline of 30% (Fig. 2). The area of other hor�cultural
crops grown over the same dura�on has fallen, albeit by a smaller propor�on, from a peak of nearly 16,000 ha
in 2001 to 15,300 ha in 2009 , a decline of just 3.7%. For both crop categories the areas of crop grown have
stabilised and started to increase.
Source: DEFRA(2009), EFFP (2011)
Table 1: Comparison of areas captured by producer survey and
DEFRA survey totals by crop groupa.
Here
38%
Shrop
22%
Staff
15%
Warw
12%
Worc
13%
Fig 1: Distribu*on of Hor*cultural Land in
the West Midlands
Herefordshire 2776.6 11928 23%
Shropshire 2389.4 6477 37%
Worcestershire 2075.7 5779 36%
Staffordshire 585.0 3596 16%
Warwickshire 1185.7 2815 42%
West Midlands 9012.4 30595 29%
% of Land
captured by
survey
DEFRA
published Ha's
Surveyed Area
Ha's
A Appendix 1 contains a breakdown by county of the areas in hor�cultural produc�on in 2010
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Cropping poten�al is determined principally by soil type. Rich alluvial loams in the Vale of Evesham are for
example suitable for growing prac�cally any crop. These soils are graded Class 1 (See Fig 3.), are easy to work and
moisture reten�ve yet well drained. Many grade 2 soils can be found to the North and West of Birmingham. These
soils are suitable for growing a wide range of crops although limited by a tendency to drought. Many farmers used
to growing potatoes and sugar beet have the necessary water extrac�on licenses needed to diversify into growing
other vegetable and fruit crops.
A study conducted by the Environment Agency in 20052
stated that irrigated hor�cultural crops accounted for 74%
of the total irrigated area, and 86% of the total volume of irriga�on water applied. This trend is at least partly
driven by the major supermarkets’ demand for quality, consistency, and con�nuity of supply, which can only be
guaranteed by irriga�on.
The same study assessed the impacts of climate change on the depths of irriga�on applied and on volumetric
water demand in the Vale of Evesham, an area of intense outdoor hor�cultural produc�on. The study showed that
with climate change, ‘dry’ year water demand for the exis�ng irrigated crops in the Vale of Evesham would
increase by around 13-20% by the 2020’s, 25-50% for the 2050’s and 38-84% by the 2080’s. The crop sectors most
impacted by climate change across the region will be potatoes, field-scale vegetables, and small fruit produc�on.
Adap�ng to these challenges should be a high priority if the sector is to remain compe��ve.
Source: DEFRA Stats Ag. English Regions(2009)
Fig 2: Comparison of areas by crop group. (Ha’s 000’s)
12.9 13.7 14.0 15.9 15.8 15.5 14.4 15.3
21.8 21.222.9 19.5
16.4 16.4 16.216.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1995 1997 1999 2001 2003 2005 2007 2009
Total Horticultural Area 000 Ha's
potatoes
horticulture
2 hJp://www.ukia.org/eabooklets/EA_Climate%20Change%20Impacts%20Hor�culture_Final.pdf
To
tal
Ho
r�cu
ltu
ral
Are
a 0
00
Ha
’s
10
Fig
3:
So
il G
rad
e C
lass
ifica
*o
n M
ap
of
the
We
st M
idla
nd
s
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Areas of Crops Grown
Growers in the West Midlands produce a varied mix of crops and host substan�al areas of the major crop groups.
With the excep�on of potatoes and hardy nursery stock the area of the other crop groups have increased
between 2009 and 2010.
There is a reasonable correla�on between the crop mix in the survey and the crop mix in DEFRA data. The survey
has a lower propor�on of fruit and potatoes, a higher propor�on of vegetables and a similar propor�on of
ornamental crops. Based on the DEFRA data shown in Table 2. ornamental hor�culture accounts for
approximately 2% of the crop area, potatoes for nearly 50% and vegetables use 24% of the cropped area with
the balance of 24% used for both hard and soL fruit growing. Only the South East region has more land
allocated to fruit produc�on than the West Midlands.
Appendix 2 gives a more detailed breakdown of the different crops, areas and loca�on of the various crops
grown in the region.
Producers were invited to describe their inten�ons regarding the area of crop they intend to grow in the future.
Due to the size of the sample of producers who completed the survey and the large range of crops it is not
possible to accurately es�mate the area of each crop grown today or how much this is likely to change in the
future. Nonetheless the data that was captured when aggregated into crop groups (Fig 4.) paints a reasonable
picture of what is likely to be grown in the next few years.
Appendix 1. gives a more detailed breakdown of the different types, areas and loca�on of crops grown in the
region.
Source: EFFP: Survey of West Midland holdings 2011
54%
28%
33%
38%
47%
31%
69%
53%
53%
47%
0%
9%
2%
7%
Vegetables
Potato
Top Fruit
Soft Fruit
Ornamental
More Same Less Stop
Fig 4: Future growing intentions for main crop groups
Proportion of respondents
2009 2010 % of Crops
Small fruit 1,972 2,017 6.1%
Top fruit 5,707 6,154 18.6%
Total vegetables grown in open 5,984 8,076 24.4%
Crops under glass/plastic 164 168 0.5%
Hardy nursery stock 797 786 2.4%
Potatoes 16,173 15,883 48.0%
TOTAL 30,797 33,084 100.0%
Source: DEFRA Farm Survey 2010
Table 2: Cropping Mix in West Midlands (Ha’s)
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For top fruit a small number of producers are planning to stop growing the crop but this is more than
compensated for by the number who intend to expand. Compared to the other crops a rela�vely small
propor�on of potato producers plan to expand the area they grow. Vegetable growing seems set to expand at a
faster rate than the other crops. The recent increase in prices (2011) and fall in the value of the pound against
the euro have undoubtedly made UK produce more compe��ve against imports.
Value of Crop Output
The total es�mated farmgate value of hor�culture in the West Midlands is around £350m based on 2009 output
and prices. In 2009 Hor�culture made up 21% of the region’s total agricultural output of £1,664 million even
though it u�lises just 3% of the land area (Fig. 5). Hor�culture has been increasing in absolute terms and as a
propor�on of the value of agriculture in the region.
There has been a steady upward trend since 2001 in the value of hor�cultural crops across the region, although
this trajectory dipped slightly in 2009 owing to lower prices generally but par�cularly for potatoes which were
20% cheaper than in 2008. Vegetable and potato prices achieved in 2010 were significantly higher than those
achieved in 2008 illustra�ng the vola�lity in returns. Since 2004 hor�culture has overtaken dairy in terms of the
value of output across the region and supports significantly higher levels of employment.
Value Added
The Gross Value Added by growers is approximately £200m and it is es�mated manufacturing and processing in
the region adds a further £390m so that the sector as a whole contributes at least £600m GVA to the region.
Added to these totals is the economic ac�vity of suppliers to the sector and an enormous number of firms and
individuals involved in the logis�cs of moving fresh produce from farm to processor and then into the retailers,
wholesalers and food service companies.
Based on analysis of the relevant data it is es�mated that processing and manufacturing involving fresh produce
has a combined output slightly less than £1bn. This includes packing, processing, impor�ng and wholesaling
although there is much less imported produce processed in the West Midlands than in those regions containing
ports or road links to the con�nent.
Full details of the gross output, valued added and employment produced within the fresh produce supply chain is
set out in Appendix 4.
17%
14%13%
17%19%
17%19%
17%
19% 20%
23% 24% 24%22%
21%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
50
100
150
200
250
300
350
400
450
1995 1997 1999 2001 2003 2005 2007 2009 (p)
Val
ue
of
Ou
tpu
t £
m (
Ho
rt-B
lue
lin
e D
airy
Gre
en
lin
e)
Milk £m
Horticulture
£m
Fig 5: Value of hor*cultural crop output and contribu*on to regional farm output
Source: DEFRA hJp://www.defra.gov.uk/sta�s�cs/files/defra-stats-ag-english-regions-2009-data.xls
Hor�culture contribu�on to
Regional Agricultural output
13
Distribu*on of Holdings
DEFRA Farm Survey sta�s�cs from 2008 indicate that the West Midlands has over 1200 hor�cultural businesses
however this includes an extremely long tail of very small producers. The 460 surveyed farms are representa�ve
of specialist commercial potato and hor�cultural businesses.
Hor�cultural output is not spread evenly throughout the region. Herefordshire has the largest area of land allo-
cated to growing hor�cultural crops and consequently produces the highest amount and propor�on of value
(Fig. 7). Despite having just 13% of hor�cultural businesses Worcestershire accounts for 20% of the overall finan-
cial output. This is due to the fact that it grows a high propor�on of very high value crops. A more detailed
breakdown of the areas and values of crop type grown across the West Midlands is set out in Appendix 2.
Hor�cultural businesses in the West Midlands average 70 ha with the largest businesses in Shropshire, Here-
fordshire and Warwickshire. Holdings in Shropshire and Herefordshire are larger than those in the other coun-
�es mainly because they have a higher propor�on of potato holdings which tend on average to be larger than
holdings growing other crops. The Warwickshire average is skewed by two extremely large vegetable produc-
ers.
Further analysis of the data reveals the distribu�on of farm sizes. The largest 25% of farm businesses account
for 71% of the total area allocated to hor�culture. The smallest 25% of producers account for just 2% of the area
used for these crops.
The survey provides clear evidence that significant consolida�on of the industry has taken place during the last
five years. Further analysis (Table 3) reveals that between 2006 and 2010 the largest quar�le of businesses in-
creased the area of land they allocate to hor�culture by 1,700 ha or 45%. In contrast the smallest 25% of hold-
ings only increased the corresponding area by 11 ha or 7%.
Table 3: Land area distribu*on of Hor*cultural holding in the West Midlands
Source: EFFP: Survey of West Midland holdings 2011
2010 2006 Change % change
Smallest Farms 32 147 158 ( 11 ) -7%
Middle Group 64 2,122 1,995 128 6%
Largest Farms 32 5,509 3,799 1,711 45%
Number
of farms
Horticultural Area Ha's
EFFP (2011) Defra Stats Ag English Regions
Fig 6: West Midlands Primary Hor*cultural Output £m and %
14
Case Study – How the natural advantages offered by the West
Midlands created a growth opportunity
PDM has grown drama*cally from a standing start in 1990 to being one of the three largest leGuce growers
in the UK today in a part of the country not renowned for hor*cultural produc*on – the North Shropshire
Plain.
Philip Maddocks started growing leJuce and cauliflowers in North Shropshire on 10 acres rented from his
father in 1990. Before sePng up his business he had worked in the USA and in the UK for large salad growers
learning the business and iden�fying the opportuni�es in the sector. His family s�ll farm nearby with dairy
caJle and arable enterprises.
Despite farming in an area not renowned for hor�cultural produc�on, the area has perfect free draining soils
for salad crops. Prior to their current use much of the land would have been in arable rota�on growing sugar
beet and potatoes. The farm’s loca�on is central to the road networks being no more than 10 miles from the
M6 and the Birmingham conurba�ons making distribu�on through their dedicated 30 lorry fleet a rela�vely
simple affair.
PDM grew as new customers were aJracted. Cauliflower produc�on was an early casualty in favour of
expanding the range and volume of salad crops grown. At first Philip concentrated on supplying whole head
Iceberg leJuces to wholesale customers. In 1993 the business started to import produce from Spain in order
to maintain year round customer supply.
By 2002 the business had started to grow LiJle Gems and Romaine leJuce in response to customer demand.
The customer porVolio had also diversified to include a range of retail as well as foodservice customers.
Produc�on increased through a mixture of land purchase and rental agreements with PDM always controlling
produc�on. The closure of the local sugar beet factory in 2004, made more suitable land available for
hor�cultural produc�on.
In 2006 the business started to grow baby leaf spinach and the following year invested in a processing facility
which has enabled the business to market bagged salads. This development con�nued this year with the
introduc�on of new crops such as wild rocket and bull’s blood chard. PDM now sells mixed leaf salads into
Morrisons under the “LiJle leaf Co.” Label.
Today PDM grows around 2,000 acres of crops in the UK and has partnerships with growing businesses in
Portugal and Spain impor�ng baby leaf crops from November to March. The season shoulders are managed
by PDM to ensure all programmed crops are u�lised. The company employs close to 350 members of staff in
the UK with the majority of these being overseas seasonal workers.
The largest challenges facing PDM include energy costs and water availability. The company has large winter
reservoirs but also uses borehole water. All their water resources were challenged by this year’s very dry
weather in the West Midlands. To mi�gate energy costs PDM has invested in PV cells on packhouse roofs
which now produce 30% of their electricity requirements.
15
EMPLOYMENT June Survey data quoted in a recent DEFRA review of labour sta�s�cs
3 indicates that across England a total of
293,000 annual labour units including family labour is employed on commercial holdings across 8.9 million
hectares. Lantra4 es�mate that 116,000 people work in hor�culture whereas official figures from the Office for
Na�onal Sta�s�cs es�mate 53,550 people are employed in hor�culture (excluding potatoes). Based on the
ONS data alone even though hor�culture occupies 240,000 ha or just 2.8% of the agricultural land area it
employs around 20% of the workforce.
Extrapola�ng the employment data collected in the survey across the West Midlands infers that across the
region the sector employs approximately 6,400 people on a full �me basis and in addi�on up to 15,000 people
working on a part �me basis. In addi�on an enormous number of people are employed supplying farmers and
further downstream in distribu�on, processing, marke�ng and retailing. In processing alone around 7,000
people are employed across the region. (See Appendix 4 for further detail).
Whilst it is difficult to state the accurate number of people employed by growers it is clear that although the
sector relies heavily on migrant and agency labour there are s�ll opportuni�es for long term careers.
Figure 7 uses 2006 as a baseline for comparing the number of people employed by growers in that year with
the number employed in 2010. From this we can see that the number of full �me employees has reduced by
12%, the number of seasonal employed UK residents by 21% and self employed individuals by 11%. By contrast
the number of Non UK seasonal employees has increased by 7%.
Analysis of the survey data in more detail shows that only 8% of respondents have grown their area of
hor�cultural crops and seasonal labour usage by significantly more than the average. Asparagus and soL fruit
appear to be the most common crops showing increases in area grown amongst survey respondents and
consequent increases in use of seasonal labour.
Looking specifically at the large rise in overseas seasonal labour amongst survey respondents reveals a
significant level of consolida�on in the region for labour use. The top 25% users of overseas seasonal labour
employed 96% of the total overseas seasonal labour and grow around 50% of the total hor�cultural crop area.
For every UK resident seasonal worker there are seven overseas seasonal workers.
Fig 7: Employment Trends - West Midlands Hor*culture 2006 - 2010 (Indexed)
85
76
10 7
8 5
0
2 0
4 0
6 0
8 0
10 0
12 0
F u ll T im e E m ployees S eason al (U K res iden ts) S eason al (O verseasres id en ts)
S e lf E m p loyed
20 06 20 1 0
3Ref: hJp://www.defra.gov.uk/sta�s�cs/files/defra-stats-foodfarm-landuselivestock-june-statsrelease-englandcropslivestocklabour-111024.pdf
4 Ref: hJp://www.lantra.co.uk/Downloads/Research/Skills-assessment/Produc�on-hor�culture-v2-(2010-2011).aspx
16
Employment Issues
Respondents to the survey frequently iden�fied obtaining and retaining staff with the right skill level as an area
which, if addressed, could make a posi�ve impact on the sector. The par�cular issues that they felt needed to be
addressed included:-
1. The need to retain the SAWS scheme
SAWS has helped growers to overcome employment difficul�es by providing an ideal contribu�on to the
industry’s seasonal labour requirements for the last 60 years. There is generally a poor response from the local
popula�on to mee�ng local, seasonal employment opportuni�es in the hor�culture sector. The hor�culture
industry con�nues to do everything it can to maximise the poten�al of the resident workforce par�cularly during
a period of high UK unemployment although con�nued availability of overseas workers is considered essen�al
by an overwhelming majority of growers.
2. The need to invest in improving skill levels
Lantra3
state there are rela�vely few enrolments on qualifica�ons and training in the area of produc�on
hor�culture. Most young people cite career prospects and training as key determinants of their career choice
and so it therefore follows that the hor�culture sector is placing itself at a significant disadvantage to other
careers where training and promo�on are a clear element of the offer made by employers.
The difficulty in recrui�ng skilled staff is seen as a threat to the sector. A number of respondents considered this
problem could be addressed through growing the business, expanding the area grown to supply year round and
hence retain staff all year.
Therefore, a sensible response through a combina�on of training ini�a�ves, including extensive use of
appren�ceships, and industry promo�on would challenge the percep�on of hor�culture as a undesirable place
to work, and encourage young entrants into the sector.
3. The need to increase labour produc*vity
An obvious way to increase labour produc�vity is to invest in technology that can subs�tute mechanical power
for human effort. Because vegetable plan�ng, harves�ng and sor�ng relies on visual as well as manual dexterity,
technology to imitate these skills is expensive to develop and buy. However developments in compu�ng power
and robo�cs together with an increased ability to grow uniform crops will make the technology to carry out the
key manual tasks more reliable and affordable.
Apart from the largest growers or contractors who can work machines across several units, machines to
subs�tute for labour are generally unaffordable. There is of course the poten�al for sharing equipment with
neighbours and the Fruit and Vegetable Scheme can be used to grant aid the purchase of some equipment.
4. The need to address succession planning
Sta�s�cs suggest that over half of working occupiers are aged 55 and over, with almost a quarter aged 65 plus -
this is oLen presented as an acute problem. There is, however, a need to be mindful that there 'may' be a
younger influence present in the business (for example, in family partnership arrangements) that is not
recognised by the survey system (which focuses on the official head of the holding).
Generally succession issues in hor�culture are unlikely to be any different to those experienced across
agriculture as a whole. Consequently, whilst the issue is important, hor�culture does not deserve special
aJen�on. However succession, at the management level, does require aJen�on to the points raised above in
rela�on to skills.
17
MARKETS
This sec�on of the report considers the extent of food processing in the region; grower organisa�on, where
crops are marketed and the rela�onships between buyers and sellers. It includes the findings from the grower
survey area and findings from a separate packer survey carried out as part of this project who purchase crop
which would equate to using 50% of the output from the Defra recorded hor�cultural area in the region.
Fresh produce clearly needs to reach the market place as quickly as possible in order to avoid deteriora�on. A
whole host of intermediaries and informa�on flows are needed to balance supply and demand. The key
channels to market include marke�ng intermediaries who may provide addi�onal services such as packing and
labelling; Producer Organisa�ons; Packers and Wholesale Markets. In addi�on there are a number of large
fresh produce businesses with direct sales routes into the mul�ple retail sector. This is especially true for soL
fruit, protected crops and some field vegetables. The overall picture is extremely dynamic and complex, as
illustrated in Appendix 3, and is made up of thousands of individual transac�ons between buyers and sellers
on a daily basis.
A number of na�onally significant marke�ng intermediaries are based in the West Midlands to be central for
their distribu�on across the country as well as being close to an important centre of produc�on. A survey of
these businesses and the produce they buy from the region accounted for some 54% of the hor�cultural area
in the region (excluding potatoes).
Distance from grower to first stage processor
The distance from grower to the first stage processor is a good indicator of the quality and quan�ty of
infrastructure within a region and the survey findings reveal that the West Midlands is well served with
packing infrastructure in all hor�cultural sub sectors other than potatoes which on average have to travel 39
miles to a processor.
Figure 8 illustrates the distance to first stage processors for survey respondents. Fresh produce which travels
furthest on average include potatoes, field vegetables and ornamentals. Many larger growers will carry out
their own first stage packing, especially for more perishable crop.
Source: EFFP: Survey of West Midland holdings 2011
Fig 8: Distance to market for major crop groups
18
SoL and top fruit travel the shortest distances with cider makers located in the region taking a significant
propor�on of top fruit produc�on and many soL fruit grower respondents selling direct to retailers with their
own packing facili�es on site. However these sta�s�cs indicate quite clearly that only a small propor�on of
fresh produce is processed outside the region. Consequently the value adding ac�vity and employment
associated with first stage processing is retained in the region. The cri�cal mass of produce grown sustains this
ac�vity together with the central loca�on and proximity to large centres of popula�on.
Appendix 6 has details on the opera�on and scale of the two wholesale markets in the region. A current study
being carried out by EFFP suggests that up to 75% of sales from wholesale markets are of imported produce
which means that they are currently of minor relevance to growers in the region.
Organisa*on of growers
Close to 40% of survey respondents indicated that they are members of some form of grower group, with 14%
of them in Producer Organisa�ons. The low number in producer groups will have been partly caused by the de
-recogni�on of the majority of PO’s within the region. This de-recogni�on denies producers access to EU
support funding worth up to 4.1% of turnover to support business development, improve marke�ng,
produc�on efficiency and sustainability. Of equal significance is that close to 50% of respondents are not
members of any form of grower group and are effec�vely ac�ng independently. Given the long tail of smaller
growers this is contribu�ng to sector fragmenta�on and placing many growers as price takers.
Across the UK, organisa�on of hor�cultural produc�on (excluding potatoes and ornamentals) within Producer
Organisa�ons (PO’s) peaked at around 50% of total produc�on in 2004. Since then the propor�on of total
produc�on within recognised PO’s has declined significantly with the de-recogni�on of a number of PO’s. By
2010 the value of total hor�cultural produc�on within PO’s was less than 35%. Within the West Midlands
there were at least four regionally based PO’s and at least two others with members in the region. Today it is
believed that there is only one recognised PO in the region.
Growers are also members of more informal marke�ng groups where one member has developed a packing
capacity and processes produce from other grower members primarily for retail markets.
Marke*ng channels
The supply chain from grower to ul�mate customer is complex within the fresh produce sector including a
number of different operators with different func�ons and organisa�onal structures. Grading and packing can
be done by grower, Producer Group or Marke�ng Agent/ Category Manager. In most cases sales to wholesale
Fig 9: Main marke*ng channels for hor*culture crops in the West Midlands
Source: EFFP: Survey of West Midland holdings 2011
19
markets and wholesalers will be made up of supply in excess of retail demand and for supply of produce which is
considered of too low a quality for retail sales.
Figure 9 illustrates the range of marke�ng channels used by grower respondents. The survey recorded
respondents’ primary route to market and the findings show clear differences between produce sectors:-
For ornamentals the key routes to market are direct to retail and consumer with over 67% of produce marketed
in this way, with a small number of respondents ci�ng wholesalers as their primary marke�ng channel.
For soK fruit the role of the producer group is much greater with more than 40% of the respondents to this
ques�on ci�ng this channel as their primary marke�ng channel closely followed by direct to retail sales which
accounts for over 23% of total sales.
For top fruit the most popular primary marke�ng channels were direct to processor and through producer
groups. The former is most likely to be cider apple growers who have individual grower contracts with
processors and the laJer dessert apple producers.
For potato producers close to 25% respondents cited wholesale customers as their primary marke�ng channel
(the largest area for sale to wholesalers amongst all the categories). However the largest propor�on of
respondents sell primarily direct to processors.
For vegetables producer groups are the favourite primary marke�ng channel, with close to 40% respondents
using this route. Evesham is a significant geographic hub for protected edibles and field vegetables (other than
potatoes) at trader and consolidator levels with a number of category managers and traders opera�ng out of
the area.
A more detailed appraisal of marke�ng channels and supply chain challenges for the main crop types grown on
the region is described in Appendix 6.
Customer rela*onships
Rela�onships with customers is a key indicator of the effec�veness of supply chain func�on. Within recent years
the rela�onship has been seriously tested by retail buyers looking to reduce their procurement costs and
applying pressure primarily to the growing base to secure these savings. Fig 10 sets out the survey findings in
this area and clearly demonstrates a perceived difference in awareness of needs and wants between growers
and their customers4. Whereas growers believe they have a very good understanding of their customers needs
this contrasts starkly with respondents percep�on of their customers awareness of their needs and wants as
growers. Communica�on between buyer and grower needs to be improved as only a fiLh of respondents
believe that customers have a good understanding of their needs and wants.
The picture is s�ll more concerning when considering the degree of openness and transparency around pricing.
36% of growers consider that their supply chains func�oned poorly in this area and only 17% of respondents
consider their supply chains func�oned well in allowing for openness and transparency. However those 17% of
growers who considered that their supply chains were transparent and open also reported that their customers
were more aware of their needs with 80% scoring this aspect of their supply chain func�on as good compared to
only 20% in the total sample. Respondents who considered their supply chains to be open and transparent are
primarily potato and apple producers mainly supplying non retail customers.
Marke�ng issues provoked comments from growers in two major areas. Firstly 8% of respondents believed that
they needed to increase their emphasis on marke�ng and customer management and secondly 7% believed
their businesses would benefit by changing to more direct routes to market.
4 The customer is assumed to be the buyer of a growers produce. However no aJempt was made in the survey to define precisely
who the customer is and so by extension use of the term customer could extend beyond the ini�al purchaser.
20
Where grower respondents do have more direct contact with retailers and customers (which applies to less
than 40 respondents) close to a third of these respondents reported focusing on marke�ng to make a posi�ve
difference to their business in areas such as improving communica�on with customers on varietal selec�on,
improving product promo�on, inves�ng in improved marke�ng facili�es, and developing closer rela�onships
with customers.
Some routes to market require a greater level of commitment from both growers and customers. In general
these are crops which take longer to establish such as top fruit and some soL fruit, or crops where there is a
high level of investment required in processing capability. Hence crops such as cider apples, blackcurrants and
processing potatoes are oLen grown on long term contracts. Other supply chains offer no commitment but do
provide a way to move produce to the market. Compe��on between intermediaries is an effec�ve way for
suppliers to discover what the market will pay. Analysis of the survey responses found that producers are more
confident about the future where they are involved in channels where there are stronger �es between the
supply chain par�cipants. In other words, producers with no allegiance to a par�cular supply chain tended to be
less confident about the future.
Wholesale Markets
A route to market requiring a rela�vely low level of commitment is offered through wholesale markets. Within
the West Midlands there are produce markets in Birmingham and Wolverhampton. EFFP es�mates suggest that
no more than 10% of total fresh produce sales at these markets are produced locally sugges�ng that they are
currently of limited benefit to regional growers. Birmingham wholesale market has some 62 fresh produce
traders amongst others and has an es�mated turnover of some £100 million per annum. Wolverhampton has a
much smaller wholesale market and informa�on on the number of fresh produce traders is currently
unavailable. For both these markets the future is uncertain. Birmingham City Council are looking to sell the
current site with a new market poten�ally being developed. Wolverhampton Council is considering alterna�ve
uses for the current site.
Source: EFFP: Survey of West Midland holdings 2011
Fig 10: Grower view of customer rela*onships
21
CHALLENGES
Much research over the past five years has been aimed at iden�fying the challenges facing the fresh produce sector,
most recently the Fruit and Vegetable Task Force and EFFP’s report into driving change in the fresh produce sector.
These challenges have contributed to a reduc�on in the self sufficiency of UK produc�on of vegetables over the past
decade. They could also lead to further area reduc�ons especially for field vegetables with growers op�ng for less
risky crops such as cereals. Within the West Midlands survey growers were asked to rank a range of different
industry challenges in terms of the level of threat they represented to their businesses. The main threats iden�fied
(Fig. 11) to business success were those that impact directly on the opera�onal performance of businesses. Energy,
pes�cide approval and employment legisla�on were the three largest concerns for growers.
Energy costs and pes*cide regula*on/ approval are unsurprisingly perceived to be the main threats to grower’s
businesses as they represent a large cost and have a major influence on business performance. The qualita�ve data
shown above in Fig 11 links very closely with the large number of sugges�ons made by growers (11% of all
comments) on how to make a difference to overall business performance in the area of energy costs.
Water availability
The challenge of water availability is not perceived as highly significant as compliance with regula�ons and
legisla�on but growers are keen to inves�gate how to improve their posi�on in rela�on to water security. 8% of all
comments on making a posi�ve difference focus on investment to extend and improve the efficiency of u�lisa�on of
water including irriga�on and reservoirs.
46%
41%
44%
35%
24%
26%
27%
20%
9%
10%
9%
11%
15%
21%
16%
27%
29%
33%
50%
57%
Local community opposition
Current supply chain structure
Raising Finance & support from banks
Planning constraints & delays
Recruiting and retaining skilled staff
Water availability
Health & safety regulation compliance
Employment legislation compliance
Pesticide regulation/approval
Energy costs
Low Medium High
Source: EFFP: Survey of West Midland holdings 2011
Fig 11: Business Challenges. % of respondents perception of significance of threat.
22
Planning constraints and delays
Planning constraints, delays and costs inhibit the modernisa�on and development of a sector with high
growth prospects. Greater awareness of the social and economic importance of the sector is needed. This will
require all parts of the sector to work together with coordina�on from and between organisa�ons that
represent growers and by individual growers helping one another. The sector needs representa�on and
engagement with planning departments and commiJees to ensure its importance to the region is fully
recognised.
There is a need for the planning processes to keep up with technological and market trends so that growers
can adopt a flexible approach to re-use of redundant buildings or installing new technologies such as AD
plants. However, it is not as simple as making the planners understand the issues. It is a process that also
involves communi�es and hence also needs to gain their trust and understanding.
Vegetable processing is considered to be manufacturing a product. Because of this it is far more difficult to
achieve planning permission than for a development in what is considered to be straight forward agriculture.
Planning applica�ons to house migrant and seasonal workers in temporary accommoda�on oLen cause
consterna�on in local communi�es.
Clearly growers need to work in partnership with their local communi�es and planning authori�es but a well
organised group of community ac�vists can cost tens if not hundreds of thousands of pounds and put the
future of jobs at stake. In future industry stakeholders will need to support the sector both in individual
planning applica�ons and in the strategic level pursuit of policies that are designed to help businesses grow.
Case Study – How Reducing energy costs and solving a waste problem is
being addressed by Evesham Vale Growers
Turning waste from a cost into a resource will be the result of this pioneering development which will result
in all the products from the anaerobic digester being used within one business and be the first AD plant for
a mixed salad business in the UK.
Evesham Vale Growers (EVG) is a fresh produce business growing tomatoes, spring onions and courgeJes in
the Evesham vale. The Company also markets tomatoes for other growers in the Vale and lists Sainsbury’s
among their customers. Their tomatoes are grown hydroponically within their 34 acres of glasshouses. Of
course they are seeking to reduce energy costs but the driving force for the project to install an anaerobic
digester on site came primarily from their rising waste disposal bill which costs over £2,500 per week for
spring onion waste alone.
The Company has recently received planning permission to build the 1.4 MW plant cos�ng around £4 million;
which will be able take between 25,000 and 30,000 tonnes of suitable waste per year. In addi�on to the
produc�on of electricity the plant will also produce around 9 million KW of heat which will be used to heat a
nearby 12 acre glasshouse on site. This will save around £30,000 per acre in annual gas costs. The es�mated
yearly produc�on of 23,000 tonnes of digestate will be used on EVG’s farms meaning that the company will
be less reliant on fer�lisers made from fossil fuels.
Once established the plant will be eligible for the Feed in Tariff (FIT) which will be 13p for the first 500 KW’s
and 9p per KW thereaLer. With these payments in place payback for the plant, which should have a minimum
20 year life, will be seven years.
A por�on of the feedstock for the plant will be fresh produce waste. In addi�on EVG intend to use maize
within the feedstock and farm yard manure from caJle finished on their farms fed partly on their fresh
produce waste. David Shepherd the Commercial Director for EVG is open to discussions with other local fresh
produce businesses with waste disposal issues as this plant will be able to produce renewable energy from
feedstock which growers may currently be paying to place in landfill.
23
Source: EFFP: Survey of West Midland holdings 2011
Fig 13: Grower Confidence in competitiveness
Grower confidence
A lack of grower confidence in their marketplace has been highlighted by many studies as a key contributory
factor to the decline in produc�on with many growers ci�ng lack of customer commitment as a constraint on
their ability to invest. The survey carried out in the West Midlands found that growers are most confident
about finding and keeping customers and least confident about achieving a viable price with close to 90% of
respondents either very worried or concerned about this (Fig 12). This finding duplicates those of the EFFP
na�onal survey of growers conducted in 2009/2010. Mee�ng customer specifica�ons is a concern for
around 50% respondents. However for those growers who consider their supply chains to be most
transparent and open, less than 60% are concerned about achieving a viable price. This group also has a
much higher level of confidence around finding and keeping customers and are marginally more confident
in their ability to meet customer specifica�ons.
Confidence in grower compe**veness
Growers on average are much more concerned about compe�ng with imports than other UK businesses (Fig.
13) with some 35% only of respondents confident in their ability to compete effec�vely with imports
compared to 58% respondents believing they can compete effec�vely with other UK businesses. Further
segrega�on of the sample found that growers who consider their supply chains to be more transparent and
open have higher levels of confidence in their ability to compete with other UK businesses and imports.
More than 70% of growers in this group are confident in their ability to compete successfully with imports
and 69% are confident of their ability to compete with other UK businesses.
Source: EFFP: Survey of
West Midland holdings 2011
Fig 12: Grower Confidence in customers and pricing
Pro
po
r�o
n o
f R
esp
on
de
nts
24
Case Study – How innova*on, differen*a*on and a focus on quality built a
strong market proposi*on
Who’d have guessed that the fastest crisps in the world are made in Herefordshire? This year, Tyrell’s
who introduced premium crisps to the UK consumer , have broken the record for the fastest crisp
processing in the world with crisps being delivered from field to customer in 45 minutes.
The Chase family were tradi�onal arable farmers in Herefordshire un�l 2002, when they decided they
wanted to add value to their main crop to improve business margins. Will Chase then set off to research
how to make and sell crisps visi�ng key manufacturers around the globe.
On his return the family started to test recipes in the farmhouse kitchen from where the Tyrell brand was
born. The region has a strong tradi�on of suppor�ng local food producers with a staunch network of
outlets for producers and so naturally their first customers were local shops in Herefordshire and
surrounding coun�es. Recently sales are expanding at 40% per annum including a quadrupling of exports
over the past few years. In today’s economic climate this is impressive growth for a product which
commands a significant premium in the marketplace. However the Company s�ll retains close linkages
with local food outlets, so much so that it was the Ludlow Food Centre which received the record breaking
crisps delivery.
The ethos of the business is, quite simply, to produce the best quality crisp possible. To help with this the
family work with a 10 strong local producer co-opera�ve who grows specific potato varie�es to exac�ng
specifica�ons. It is this aJen�on to detail that enables Tyrell’s to leave the skin on the crisps which gives
them their authen�c and characteris�c appearance.
Whilst the Chase family no longer own the business one of the keys to their con�nued success is product
authen�city and integrity. All the crisps are made on the farm site in Herefordshire with all opera�ons
carried out here. The business employs a rela�vely small staff of 110 people. Alongside their enthusias�c
focus on quality produc�on the business has also carved out a niche amongst its target customers for
being fleet of foot with new products coming to market within eight weeks. This has allowed them to
introduce new flavours for the different seasons and to mark significant events.
Produc�on is on a human scale too. Their kitchen has eight keJles which fry 50 kg batches of sliced
potatoes in 7-9 minutes depending, as Oliver Rudgard the Marke�ng Director says, on the individual quirks
of each keJle. These eight keJles are now working very hard on a four shiL system producing 50% more
crisps than they did last year.
Tyrell’s use around 10,000 tonnes of potatoes per year at the moment and with current levels of
expansion predicted to con�nue for the foreseeable future it is easy to see that this business will take a
bigger slice of Herefordshire’s 180,000 tonne potato crop. Being successful in today’s highly compe��ve
market-place makes it increasingly important to ensure your products supply chain is robust and agile.
Tyrell’s achieve this by keeping �ght control of all parts of their supply chain but nothing is as important as
making sure that the basic ingredient, the potato, is perfect for crisping.
25
OPPORTUNITIES
Opportuni�es within the fresh produce sector are many and varied and can be divided between those
rela�ng to improving or adap�ng opera�onal performance (processes) or exploi�ng market opportuni�es.
Any opportunity will tend to be very specific to individual businesses depending on the resources at its
disposal and the knowledge or informa�on and skill of both managers and opera�ves (Fig 14). It follows that
successful businesses are those that both understand market poten�al and can produce in the most efficient
way adop�ng new technology as appropriate. In each of the dimensions shown in Figure 14 the possibility
also exists to work collec�vely with other growers or other parts of the supply chain.
The survey was used to explore growers aPtudes towards improving skill and knowledge and working with
other businesses in the supply chain. Growers were asked to assess the importance of four pathways to
support business development. The four areas inves�gated were: training and skills; research and
development; working with other farmers and knowledge transfer. Figure 15 illustrates how growers ranked
these four pathways. Research and development was expected to deliver the greatest impact on business
development whereas, by comparison, training and skills would have the least impact on business
development.
Grow New Crops
Increase exis�ng
crops
Increase scale
Consolidate
Reconfigure supply
chain
Improve technical
efficiency
R&D
Diversifica�on—e.g
Energy
MA
RK
ET
S
PROCESSES
Exis�ng New
Exi
s�n
g
Ne
w
Improve
skill &
knowledge
Collabora
�on
Fig 14: Matrix of Opportuni*es for the Fresh Produce sec-
15%
17%
23%
33%
31%
22%
16%
10%
Training & Skills
Working with other farmers
Knowledge transfer
Research & Development
High Medium Low n=126
Source: EFFP: Survey of West Midland holdings 2011
Fig 15: Importance of business development pathways perceived by
Growers
26
Further segmenta�on of this data into large and small farms indicate that :
• Larger farm businesses give more priority to training and skill development than smaller ones. 56% of
small farms thought training was high or medium priority whereas the corresponding figure for large
farms was 78%.
• There was no difference of opinion between large and small farms on the impact of working with other
farmers
• 93% of large farms and 86% of small farmers felt that increasing research and development would
have either a large or medium impact on the performance of their businesses
• A similar result was reached in rela�on to knowledge transfer
Larger farms tend to be more posi�ve overall towards each of the four pathways although it should be born in
mind that these are just general observa�ons based on averages. There are many small farm businesses that
rate the importance of these pathways as high or higher than several large businesses.
Growers made very liJle men�on of any of these areas other than working with other farmers in their own
sugges�ons for making a posi�ve difference to their businesses, although there were many comments on
improving efficiency which will presumably require an element of research, training and knowledge transfer.
Case Study – How innova*on and research created value
The Chinns at Cobrey Farms are pioneers in the asparagus field – leading the way to extend the season for
this quintessen*ally English crop.
The Chinn family have been farming in Herefordshire for genera�ons. Like many farms in the county they
used to run a mixed livestock arable farm un�l the late 1990’s when the business moved more into fresh pro-
duce growing potatoes and onions. At this �me the business also peeled and sliced onions for the Foodser-
vice sector in the West Midlands.
A significant turning point for the business occurred in 2002 when the cold stores and processing facili�es
were destroyed by fire. This caused the business to take stock and based on a rigorous assessment of the eco-
nomics of onion growing compared with alterna�ve land use op�ons. The decision was made to stop grow-
ing and processing onions and find a new more profitable crop to grow. John Chinn researched his rela�ves
who were already growing strawberries in polytunnels which gave him the idea of growing asparagus in a
similar way. At this �me it was a field crop available for liJle more than 6-8 weeks from England. Following
research in South America and southern Europe the family started growing and conducted trials to find suita-
ble varie�es and growing techniques to extend the season.
Cobrey Farms now produces around 27% of all the asparagus produced in the UK. For Herefordshire it is now
a major business employing over 1,000 people to grow, pick, pack and distribute the crop which is all sold to
major retailers in the UK. The family’s pioneering spirit is s�ll strong with the business employing its own
expert agronomist to conduct growing and variety trials.
They also work with Cranfield University to solve the challenge posed by diffuse pollu�on from their free
draining soils. One outcome of this has been the installa�on of grass waterways in many fields where run off
is an issue.
As well as leading the way in terms of innova�on and sector research the family are mee�ng the demand
challenge head on. John Chinn says: “the largest opportunity in the asparagus sector at the moment is to in-
crease produc�on to match demand increases. For Cobrey Farms the shoulders of the season are a significant
produc�on target. This year for the first �me we will have asparagus available in the period from August to
November”. They are inves�ng in land to grow asparagus and working with other growers who want to get
involved with this exci�ng crop.
27
Making a posi*ve difference to growers businesses
A key part of this project is to drive change in the fresh produce sector though iden�fying what is holding the
sector back and finding out from growers themselves what their solu�ons could be. In the survey growers
were invited to propose two ideas that would make a posi�ve difference to their business. In total 165 differ-
ent comments were received . Any idea men�oned more than ten �mes is set out in Table 4 and Appendix 7
sets out a more complete analysis of the responses.
Quite a few of these ac�vi�es are being suggested in order to counter challenges in the areas of energy costs,
water availability, achieving a viable price and improving compe��veness against imports . Given recent
price increases, media aJen�on and the focus on climate change it is perhaps unsurprising that the issue of
energy costs is the number one issue on producer’s minds.
The need to address irriga�on concerns has implica�ons for public policy as well as at a purely farm level.
Addressing cost pressures through making more effec�ve use of inputs or by achieving economies of scale
through expansion or by using modern labour replacing machinery are recognised as being important.
The need to address market concerns varies amongst different segments of producers. For example further
analysis of respondents sugges�ng an increased emphasis on marke�ng and customer management are
those who, in the main, already have more direct customer rela�onships. Those considering more direct mar-
ke�ng are currently selling through others or to wholesalers/ processors.
This priori�sed list provides a useful star�ng point for further ini�a�ves to support sector development.
Table 4: Collated qualita*ve Responses to ques*on “What would make a posi*ve difference to your
business?” In order of frequency of response
Category Number of
responses
Investment to improve energy use efficiency including renewables 18
Making more effec�ve use of inputs 17
Investment to extend and improve the efficiency of u�lisa�on of water including
irriga�on and reservoirs 14
Increased emphasis on marke�ng and customer management 14
Invest in improved machinery leading to reduc�ons in use of resources such as labour
and improved opera�onal efficiency 12
Changing varie�es grown 12
Changes to routes to market – more direct 11
Expand to take advantage of economies of scale (machinery, input purchase and labour) 10
28
CONCLUSION
The West Midlands region has natural advantages for the produc�on of fresh produce that few other regions
can match. It is centred within and close to areas with high popula�on density and located in the centre of
the country with good links to all major transport networks. Furthermore it has soils and climate that suit
fresh produce produc�on and established networks of growers and processors that can facilitate expansion.
The sector in the West Midlands is excep�onally dynamic and responsive to market demand as evidenced by
the development of asparagus, potato, fruit and no doubt other enterprises. But producers are frustrated
with rules and regula�ons that prevent them from growing and developing their businesses at a faster rate.
The deregistra�on of producer organisa�ons by the EU, planning delays and demands, legisla�on on pes�-
cide use and the controls on employing labour are burdens that have impacted heavily on this sector and are
expected to con�nue to do so in the foreseeable future.
A consequence of this is that smaller producers generally find it difficult to grow and develop their business-
es. Larger businesses with more management resource and who find it easier to afford professional support
are probably not held back to the same extent but they generally find that public bodies s�fle rather than
s�mulate.
In comparison to other agricultural sectors like cereal and dairy which produce a limited number of very ho-
mogenous products the fresh produce sector is the complete opposite. There is enormous variety in the
crops that are grown and in the ways that they are produced and marketed. This makes the task of analysing
and commen�ng on the sector difficult. What is appropriate advice for a potato farmer in Staffordshire prob-
ably won’t even be relevant to a strawberry grower in Herefordshire. It is therefore unlikely that generic ad-
vice and support to the industry will be effec�ve. However, planning, marke�ng, employment, training, and
investment are issues common to all classes of grower. The following pages of this report address these
common issues.
Compe��on from imported produce will con�nue to weigh on Bri�sh growers, underscoring the need for
clear and relevant R&D and communica�on channels at each level of stakeholder engagement. Likewise,
aJrac�ng highly skilled workers and graduates to hor�culture must be a high priority given the oLen misguid-
ed depic�on of a stagnant industry and the current heavy reliance on migrant workers.
It is very clear from this study that hor�culture is important to the economy of the West Midlands and has
responded posi�vely to market demand. However the significant challenges iden�fied by producers and de-
scribed in this report cannot be ignored and change is needed. For things to change someone or something
has to start ac�ng differently. With this in mind, and based on the findings of this report, eight key ac�ons
that will benefit everyone in hor�culture across the region have been iden�fied. These are set out overleaf
and it is hoped that they will galvanise the industry to build on current success.
29
AN ACTION PLAN FOR CHANGE
Set out below are the key actions that the authors and the report steering committee believe are necessary to
promote the competitiveness and sustainability of horticulture and potato growing in the West Midlands.
Good work is already being conducted by growers, processors, industry bodies and other key stakeholders to
help sustain the sector. However, more can be done to support the sector where the marketplace is not
working efficiently. Mainly it is up to the industry itself to address these issues but the recommendations
below also indicate how and where the public sector and others can help.
1 Support grower cooperation and build effective supply chain partnerships with transparent pricing mechanisms across all crops
Growers will not invest in production assets unless they are confident that reward will outweigh risk. The
most stable and confident enterprises are those where growers, processors and manufacturers work
together to create and share value and have a high degree of certainty with pricing.
Current Activity: Future activity:
Industry bodies and key stakeholder
engagement with growers and processors
nationally to support the development of
supply chain partnerships
Existing examples in cider, potato and some
soft fruit supply chains
PCL benchmarking cost of production in UK and
Western Europe
Encourage broader and deeper participation by growers and processors in supply chain partnerships. Involve more growers across a greater number of crops.
Industry bodies should research and promote effective supply chain partnership working.
Demonstrate via the use of case studies best practice in this area
Make available templates and pricing models that can be adapted to individual supply chain needs that reflect costs and risk at all stages. Scope for Industry bodies such as NFU to benchmark performance
2 Make sure the West Midlands takes full advantage of the EU Fruit and Vegetable Scheme
Derecognition of Producer Organisations by the RPA has left many producers bewildered. However, it is
possible to qualify and improve profits if the scheme rules are followed correctly. If National and EU
competitors make use of this scheme and growers in the West Midlands do not, this will create a serious
competitive disadvantage for them. Support is needed to help derecognised producers comply with the
scheme and enable new groups to successfully apply.
Current Activity: Future activity:
NFU support for derecognised POs with the RPA
EFFP advice to POs on formation and recognition issues
Growers via representative bodies such as the NFU working with government bodies to increase eligibility
Awareness raising amongst growers of the benefits of the support available through the scheme
Support to develop horizontal collaboration leading to the formation of compliant Producer Organisations
30
3 Create greater awareness of the employment opportunities the sector provides and retain SAWS to safeguard the production of high value crops.
The sector needs reliable and flexible labour to cope with seasonal demand and the survey points to serious
limitations for many growers if the SAWS scheme ends in 2011 as proposed. The proposed successor to the
SAWS scheme requires industry and political support if it is to come into effect.
Current Activity: Future activity:
NFU working with industry partners have negotiated scheme extension until 2013
Successor scheme proposed by NFU and stakeholder partners to be promoted to government
Proactive response by labour providers
See next recommendation #4
4 Ensure high quality training, appropriate qualifications and career development is a cornerstone of horticultural business plans
Horticulture is technologically advanced, expanding and in need of a dedicated and skilled workforce. If the
industry offers rewarding long term opportunities to individuals it will attract and retain the talent it needs
to remain competitive and grow. Making more use of apprenticeships and working closely with specialised
colleges should be encouraged.
Current Activity: Future activity:
Several local colleges are able to provide apprentice scheme
Management training available via Management Development Services a consortium of grower groups
Awareness raising amongst growers of the opportunities and benefits provided by apprenticeships
Greater dialogue between growers and colleges to increase the awareness of opportunities in the sector at all levels amongst undergraduate students
Endorsement and development of specialist qualifications
Increased scope for using Web2.0 technologies for virtual interaction between key stakeholders
5 Exploit all forms of renewable energy where it is economical to build long term sustainable competitive advantage
Energy policy is being shaped by climate change and projected cost increases. Many horticultural businesses
working alone or with other growers have an opportunity to take advantage of government incentives and
developments in renewables technology. Case studies, study tours and links to specialist advice will enable
the sector to develop the knowledge and confidence to adapt to this opportunity.
Current Activity: Future activity:
Plethora of private and public bodies providing advice and support on conservation and generation of energy
PCL benchmarking sustainability initiatives
Links from the bodies responsible for delivering advice in this area into the network of organisations who traditionally provide support to the sector
A role for PCL And HDC is to promote examples where good practice has been adopted in the region –
31
6 Increase water storage capacity and ensure efficient usage of water by adopting best irrigation practice.
Expansion of horticulture and the predicted impact of climate change on UK weather patterns will increase
reliance on irrigation. More water storage will be required and more attention on irrigation techniques that
allow better use of water.
Current Activity: Future activity:
Raising awareness of the potential impact of climate change on water requirements
Advice and support on water conservation
Enhanced knowledge transfer knowledge from primary research into practical recommendations
Raise awareness and promote examples where good practice has been adopted both in the region and globally
Prioritise investment for the development of storage
7 Make certain that individuals with responsibility for planning are fully aware of the social and economic benefits of developing the sector.
Planning constraints, delays and costs can inhibit the modernisation and development of a sector with high
growth prospects. Greater awareness of the social and economic importance of the sector is needed. This
will require all parts of the sector to work together with coordination from and between organisations that
represent growers and by individual growers helping one another. The sector needs representation and
engagement with key stakeholders including planning departments and Local Enterprise Partnerships to
ensure its importance to the region is recognised and that it can access a fair share of government support.
Current Activity: Future activity:
Reform of UK planning law Raise awareness amongst policy makers of the current and likely future importance of the sector in the West Midlands and its ability to increase regional GVA
Educate growers on impact of proposed changes to planning law
Case studies of good community and planning authority engagement for grower use
8 Build strong partnerships with organisations responsible for research and development and work closely with regional higher education institutions
Government cuts have progressively dismantled many of the organisations and networks that supported
agronomic research & development and knowledge transfer. More investment is needed to sustain success.
Much of this can take place at a national level but colleges, universities, consultants and growers in the
region should attempt to coordinate their activity to avoid duplication and ensure that resources are used in
the most efficient and effective way. Practical field trials, discussion groups, access to experts and
engagement along the supply chain are needed to facilitate rapid adoption of technology.
Current Activity: Future activity:
HDC & PCL levy funded research – including cross sector research on topics like soils or renewables.
Larger growers funding their own R&D
Corporate supply chain R&D (e.g. McCain and Pepsico)
West Midlands Fresh Produce Forum
The West Midlands Fresh Produce Forum to take a lead on regional research bringing growers and researchers together to resource identified research needs
Continued TSB/Levy funding opportunities for Horticulture (specific to SME’s)
Local funding initiatives for research on minor crops
Improved knowledge transfer activities
32
33
Herefordshire
Herefordshire
Herefordshire
Herefordshire
Shropshire
Shropshire
Shropshire
Shropshire
Staffordshire
Staffordshire
Staffordshire
Staffordshire
Warwickshire
Warwickshire
Warwickshire
Warwickshire
Worcestershire
Worcestershire
Worcestershire
Worcestershire
Grand Total
Grand Total
Grand Total
Grand Total
Proportion
Proportion
Proportion
Proportion
Category
Crop
Fruit
Apples
275.8
0.0
1.0
0.0
169.7
446.4
6.0%
Fruit
Strawberries
178.2
20.2
65.0
0.0
3.2
266.7
3.6%
Fruit
Rasberries
58.2
6.9
1.0
0.0
2.6
68.7
0.9%
Fruit
Blackberries
10.5
0.0
1.0
0.0
0.0
11.5
0.2%
Fruit
Blackcurrant
153.0
0.0
1.0
0.0
0.0
154.0
2.1%
Fruit
Blueberries
17.5
0.0
0.0
0.0
0.0
17.5
0.2%
Fruit
Top & stone fruit
28.2
0.0
0.0
0.0
94.6
122.8
1.7%
Total Fruit
Total Fruit
Total Fruit
Total Fruit
721.5
721.5
721.5
721.5
27.1
27.1
27.1
27.1
69.0
69.0
69.0
69.0
0.0
0.00.0
0.0
270.1
270.1
270.1
270.1
1087.7
1087.7
1087.7
1087.7
14.6%
14.6%
14.6%
14.6%
OrnamentalBulbs and outdoor flowers
0.0
0.0
0.0
0.0
0.0
0.0
0.0%
OrnamentalHardy nursery stock
5.3
36.0
0.0
25.1
99.0
165.4
2.2%
OrnamentalProtected ornamentals
0.0
0.0
0.0
9.3
3.8
13.1
0.2%
Total Ornamental
Total Ornamental
Total Ornamental
Total Ornamental
5.3
5.35.3
5.3
36.0
36.0
36.0
36.0
0.0
0.0
0.0
0.0
34.4
34.4
34.4
34.4
102.8
102.8
102.8
102.8
178.5
178.5
178.5
178.5
2.4%
2.4%
2.4%
2.4%
Potatoes
Potatoes
Potatoes
Potatoes
1450.5
1450.5
1450.5
1450.5
1802.6
1802.6
1802.6
1802.6
504.6
504.6
504.6
504.6
206.4
206.4
206.4
206.4
126.3
126.3
126.3
126.3
4090.4
4090.4
4090.4
4090.4
55.0%
55.0%
55.0%
55.0%
VegetablesAsparagus
364.2
0.0
1.8
3.0
122.2
491.2
6.6%
VegetablesBrassicas
11.3
0.0
0.0
0.0
298.7
310.0
4.2%
VegetablesCarrots
0.0
169.7
0.0
0.0
20.0
189.7
2.6%
VegetablesCucurbits
4.9
0.0
0.0
0.0
51.0
55.9
0.8%
VegetablesHerbs
0.0
0.0
0.0
0.0
40.9
40.9
0.6%
VegetablesHops
38.4
0.0
0.0
0.0
40.5
78.9
1.1%
VegetablesLegumes
44.5
0.0
0.0
0.0
252.9
297.4
4.0%
VegetablesM
ushrooms
0.0
0.0
0.0
0.0
0.0
0.0
0.0%
VegetablesO
nions
0.0
9.7
0.0
20.2
0.4
30.4
0.4%
VegetablesParsnips
0.0
8.9
0.0
0.0
0.4
9.3
0.1%
VegetablesTomatoes
0.0
0.0
0.0
0.0
20.9
20.9
0.3%
VegetablesSalads
0.0
0.0
0.0
0.0
412.5
412.5
5.5%
VegetablesSpring Onions
0.0
0.0
0.0
0.0
136.5
136.5
1.8%
VegetablesVines
2.8
0.0
0.0
0.0
1.0
3.8
0.1%
Total Vegetables
Total Vegetables
Total Vegetables
Total Vegetables
466.2
466.2
466.2
466.2
188.3
188.3
188.3
188.3
1.8
1.8
1.8
1.8
23.2
23.2
23.2
23.2
1398.1
1398.1
1398.1
1398.1
2077.7
2077.7
2077.7
2077.7
27.9%
27.9%
27.9%
27.9%
Total Horticulture
Total Horticulture
Total Horticulture
Total Horticulture
2,643
2,643
2,643
2,643
2,054
2,054
2,054
2,054
575
575
575
575
264
264
264
264
1,897
1,897
1,897
1,897
7,434
7,434
7,434
7,434
Ap
pe
nd
ix 1
: S
um
ma
ry o
f su
rve
y d
ata
34
Value of Primary Agricultual O
utput within the W
est Midlands 2009
Value of Primary Agricultual O
utput within the W
est Midlands 2009
Value of Primary Agricultual O
utput within the W
est Midlands 2009
Value of Primary Agricultual O
utput within the W
est Midlands 2009
Area
Area
Tonnes
£ total
Area
Tonnes
£ total
£/T
129
426.12
Herefordshire
4872
238184
30,725,712
591
11,648
4,963,361
Worcestershire
756
36960
4,767,783
3 079
60,683
25,858,185
Warwickshire
1408
68835
8,879,680
984
19,393
8,263,869
Shropshire
5649
276170
35,625,933
767
15,116
6,441,451
Staffordshire
2342
114496
14,770,036
709
13,973
5,954,353
West Midlands
14996
733129
94,769,145
6 148
120,813
51,481,219
1, Potato PricesDEFRA Price Series for Potatos, Eggs
Poultry, Eggs, B
utter, Cheese & potatoes
Area
Area
Tonnes
£ total
Area
Value £
£/T
1,365
Herefordshire
5 632
80684
110,172,036
136
10,093,534
Worcestershire
1 297
18581
25,371,650
189
14,027,044
Warwickshire
235
3367
4,597,022
152
11,281,009
Shropshire
144
2063
2,816,899
144
10,687,271
Staffordshire
296
4241
5,790,292
110
8,163,888
West Midlands
7 679
108935
148,747,899
731
54,252,745
Potatoes 1
Fresh Produce
Fruit
Ornamentals
Ap
pe
nd
ix 2
: V
alu
e o
f W
est
Mid
lan
ds
Ho
r�cu
ltu
re b
y c
rop
gro
up
a
nd
co
un
ty
35
Ap
pe
nd
ix 3
: S
um
ma
ry m
ap
of
the
ra
ng
e o
f su
pp
ly c
ha
ins
for
fre
sh p
rod
uce
36
West
Midlands UK
West
Midlands UK
sou
rce
sou
rce
sou
rce
sou
rce
sou
rce
Fruit 8.17 1 28.56 3
Vegetables 8.24 124.53 3
Potatoes 16.5 1 130 4
32.91 283.09
Output (£mill)
Potatoes 81.9 1 940 4 149 10 1710 5 3,528 6
vegetables 82.1 1 1054 3 521 11 6694 5 6,929 6
Fruit 127.0 1 567 3 326 12 1454 5 6,457 6
Plants and flowers 90.2 1 700 3 3,328 7
381.21 3,261 996 8,404 5 20,243
Gross Value Added
£ mill 202 1,728 393 3,320
% 53% 2 53% 39.50% 13 39.50%
Employment
People Employed 6,400 8 53,000 9 7,348 14 62,000 5
Output per employee 59,564 61,528 135,556 135,556
References1
2
3
4
5 ONS, Annual Business Survey 2007 - Section C Manufacturing
6
7 ONS - Family Spending 2009 Edition
8 EFFP - Heart of Horticulture 2011 (full time employees)
9 Survey of Agriculture & horticulture 2009
10 Assuming 6% of UK production and manufacturing
11 Assuming 7.7% of UK production and manufacturing
12 Assuming 22.3% of UK production and manufacturing
13 Assume proportion value added is on par with UK average
14 Assume number employed is pro rata with UK average
Area 000 ha
Appendix 4:
Gross Output and Gross Value Added for UK and West Midland Horticulture Primary Production and Food
Manufacturing 2009
Farmgate Food ManufacturingConsumer
(UK)
Defra: Structure of the industry in the West Midlands
Extrapolated from - Farm Business Survey 2009 - http://www.farmbusinesssurvey.co.uk
ONS, Family Food Survey 2009
DEFRA: Basic Horticultural Statistics 2010
The Potato Council - http://www.potato.org.uk/industry/supply-chain
37
Appendix 5: Markets
BIRMINGHAM MARKET
PRODUCT TYPES AND SPECIALITIES
Composite market with fresh produce, meat, fish and poultry
(largest integrated wholesale market in England)
NUMBER OF TRADERS/UNITS
62 fresh produce traders
6 meat traders
6 poultry traders
20 fish traders
235 units
OWNERSHIP
Birmingham City Council
OCCUPANCY LEVEL
65%
(spare units let for stor-
age)
SUPPLIER CATCHMENT AREA
All of the UK
KEY ISSUES
Birmingham City Council says it costs £2.8
million to run the market but receives
only £1 million short of this figure in in-
come when the market is fully let.
The site, being in the centre of Birming-
ham, is worth an es�mated £70-80 mil-
lion for redevelopment
Promo�on of the market is a key issue for
the tenants
FUTURE PLANS
There are BCC plans to
sell off the site early
2013. Plans for the de-
velopment of a new
market in a different
loca�on are unclear at
present.
TURNOVER
Es�mate of £100 – 150 million
MARKET CHARACTERISTICS/LAYOUT/
CONDITION/ETC
There has been liJle investment in the
market in the past 5 years and it is in
need of modernisa�on and repair, in par-
�cular the roof. It is 37 years old
EMPLOYMENT
More than 1,000
CUSTOMER MARKETS AND CATCH-
MENT AREA
Mostly Midlands and north.
Es�mated 13,000 customer visits each
week
TENANTS’ ASSOCIATION DETAILS AND
MEMBERSHIP
Reasonably strong tenants’ associa�on
ESTIMATE OF LOCAL
PRODUCE SUPPLIED
INTO THE MARKET
Es�mate about 10%
POTENTIAL SYNERGIES AND CLUSTER-
ING WITH OTHER MARKETS
It is in the same customer and supplier
catchment as markets at Derby, Wol-
verhampton, NoPngham and Leices-
ter
38
Appendix 5 (Cont’d)
WOLVERHAMPTON MARKET
PRODUCT TYPES AND SPECIALITIES
Mostly fruit and veg
NUMBER OF TRADERS/UNITS
28 units
7 warehouses
Growers and fish stands
6 traders
OWNERSHIP
Wolverhampton City Council
OCCUPANCY LEVEL
About 75%
SUPPLIER CATCHMENT AREA
Mostly imports – products sold cannot
be grown locally
KEY ISSUES
Lease renewals (short term) are due
in September.
FUTURE PLANS
Possible market reloca�on
TURNOVER
Did not know
MARKET CHARACTERISTICS/LAYOUT/
CONDITION/ETC
In need of modernisa�on and invest-
ment
EMPLOYMENT
Not sure but < 100
CUSTOMER MARKETS AND CATCH-
MENT AREA
Localised, serving primarily ethnic
groups
TENANTS’ ASSOCIATION DETAILS
AND MEMBERSHIP
Small provincial market with a rela-
�vely weak traders group
ESTIMATE OF LOCAL PRO-
DUCE SUPPLIED INTO THE
MARKET
Fairly small < 10%
POTENTIAL SYNERGIES AND CLUSTER-
ING WITH OTHER MARKETS
Worried that tenants will move to
Birmingham market (they have both
links and conflict with them)
39
Appendix 6: Supply chain overview of significant fresh produce crops within the West Midlands
Within the West Midlands there are a number of sub sector supply chains of significance. Due to their na�onal
importance they will be looked at individually. They are soL fruit, asparagus, cider apples, mushrooms and
potatoes.
Blackcurrants
The blackcurrant supply chain is dominated by Glaxo Smith Kline (GSK) who purchase more than 90% of all UK
blackcurrants for Ribena produc�on. Very few blackcurrants are sold at retail level and there are only very limited
alterna�ve markets to GSK for blackcurrants, with the only other blackcurrant processor also located in the West
Midlands. GSK market Ribena on its UK provenance and hence it is vital that they have a secure UK supply. Eight
growers in the West Midlands are responsible for around 35% of total UK produc�on. Produce is juiced at
Thatchers contract juicing facili�es in Somerset. Blackcurrant growers have individual produc�on contracts with
GSK which are renewed on a regular basis. Blackcurrants are a long term crop with significant investment in new
planta�ons required every ten to twelve years with a two to three year lag period before blackcurrants reach peak
yields. This high level of commitment and requirement from GSK for UK fruit produces interdependence between
grower and processor underpinned by long term agreements.
Strawberries
The region is well known for strawberry produc�on with a number of large scale strawberry growers marke�ng
direct to retail. In addi�on to large scale businesses marke�ng direct to retail there are other growers based in the
region who market through one of two Producer Organisa�ons based in the South East & East of England. It is
es�mated that the soL fruit sector (excluding blackcurrants) in the West Midlands contributes close to £28 million
in added value from farm gate to consumer. Strawberry produc�on has greatly benefited from investment in new
varie�es and extending the growing season through the use of polytunnels. So much so that now for a small
number of weeks in the year UK produc�on exceeds demand and overall the UK is 73% self sufficient in
strawberries compared to 12.1% self sufficiency for all fruit. This is now crea�ng new challenges for strawberry
growers who are seeking to iden�fy ways to differen�ate their product offers to the market. Unlike blackcurrants
there is no significant demand for UK strawberries outside the retail market as a result of the varie�es grown and
produc�on cost.
Cider apples
Cider apples are grown primarily for processing with UK supplies boosted by commodity apple juice purchased
from around the world and surplus culinary apples from other parts of the UK. The West Midlands is home to the
largest UK cider manufacturer and the transforma�on of apples into cider takes place completely in the West
Midlands.
The region benefits from the presence of a juicing facility at Ledbury which is state of the art and capable of
pressing over 100,000 tonnes apples in a 12 – 14 week period. Defra sta�s�cs suggest that there are around 6,000
hectares of cider apples and perry pears in Britain and the EFFP packer survey es�mates that at least 65% of this
total area is located within the West Midlands with one major na�onal and a number of smaller regional cider
manufacturers in the region. The major manufacturer nego�ates long term supply contracts with growers based
on an area and volume calcula�on with agreements in place for 30 years. This provides significant stability and
longevity to produc�on planning in a sector where long term planning and commitment are essen�al.
Asparagus
The West Midlands has been able to benefit from the deep free draining soils in part of the region to increase
produc�on of this high value crop and to employ technologies to allow for the growing season to be extended
from the tradi�onal March– July period to include a new period from August to November. Within the West
Midlands over 65% of all English asparagus is grown with the crop currently occupying some 820 ha predominantly
in Worcestershire. The crop turns over more than £20 million per annum for West Midlands growers. UK
consumer demand for asparagus is currently increasing by around 12-14% per annum with UK produc�on rising at
around 7% per annum. Whilst demand increases outstrip UK produc�on imports will con�nue to be the
predominant source of supply with South America being a major supplier. Investment in asparagus growing is
40
significant with plants remaining in the ground for 10 years and research work ongoing into varie�es which will
enable the season to be extended in conjunc�on with polythene cloches and polytunnels.
Potatoes
The supply chain structure for potatoes is split into businesses growing potatoes for the retail market (either as
prepack or loose potatoes) and those businesses processing potatoes into products such as crisps and chips.
The West Midlands region is a significant producer of potatoes especially in Herefordshire and Shropshire
producing more than 13% of the UK’s produc�on. Unlike most field vegetables a significant propor�on of potatoes
grown in the UK are des�ned for further processing rather than for the pre-pack des�na�ons. The table below
shows the des�na�ons of the region’s potato produc�on.
Table 1: Potato U*lisa*on in the West Midlands
Source: PCL
Close to 50% of total produc�on is processed with growers producing on contract. In addi�on there is a small area
of seed potatoes produced in Shropshire. Despite the significant level of produc�on in the region there are few
significant potato processors in the region, apart from a chip factory Nr Wolverhampton, This adds to the
transport costs for this supply chain from the region.
Mushrooms
Mushrooms have been included in this sec�on as they require significant investment and within the West Midlands
there are two fresh produce growers involved in this sector who together produce more than 10% UK mushrooms.
Table 2 illustrates the current market balance for mushrooms in the UK.
Table 2: Market Balance for Mushrooms in the UK 2010
UK retailers are increasingly specifying a requirement for UK produced mushrooms, which will require investment
on the part of UK growers to increase produc�on from the current historic low point of produc�on. Produc�on has
dwindled as a result of the past strength of sterling which made imported mushrooms a more cost effec�ve op�on
for retailers. The crop is capital intensive but has a rela�vely short produc�on cycle which has meant that
produc�on moves to lower produc�on costs areas rela�vely easily with Poland being the current source of
increasing volumes of mushrooms as they invest in the infrastructure needed with EU support.
Market sectors
Fresh bags 42,095
Fresh chipping 97,909
Pre-pack 149,433
Processing 369,958
Other Ware 63,930
Seed 6,749
Total 733,129
Produc*on
tonnes
Volume (T)
Home Production Marketed (HPM) 69,300
Imports 98,277
Exports 715
Total Supply: 166,862
Source: Basic Hor�cultural Sta�s�cs, DEFRA, 2010 provisional
41
Category Number of responses
Investment to improve energy use efficiency including renewables 18
Making more effec�ve use of inputs 17
Investment to extend and improve the efficiency of u�lisa�on of water including
irriga�on and reservoirs 14
Increased emphasis on marke�ng and customer management 14
Invest in improved machinery leading to reduc�ons in use of resources such as labour
and improved opera�onal efficiency 12
Changing varie�es grown 12
Changes to routes to market – more direct 11
Expand to take advantage of economies of scale (machinery, input purchase and labour) 10
Improvements and increases to storage facili�es 9
Improvements in opera�onal efficiency 9
Working with other growers on such areas as machinery sharing, marke�ng, input
purchase 7
Improve effec�veness of staff usage 7
Improving grading capacity 5
Extending crop seasons including R and D 5
Increase yields 4
Focus on diversifica�on / added value (farm shop, chicken produc�on) 4
BeJer matching of crops to customer requirements 4
Changing from machinery ownership to hiring in 2
Appendix 7: Collated qualita*ve Responses to ques*on “What would make a posi*ve difference to your
business?” In order of frequency of response